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Net needs to evolve

Published on .

The Internet is going to have to develop full motion video before it can become a viable business, Tom Roberts, president of NBC Cable & Business Development and an exec VP at NBC told Wall Street analysts at the annual Paine Webber media conference Monday. "Text and graphics as it exists today on the Internet is not the business we are chasing," said Mr. Rogers. In its current format, there is very little barrier to entry, he said. Full motion video will create a shakeout, he said, but ultimately leave a playing field where successful competitors can make money. "Video will transform this from a field where most of the people are losing money to one in which most of the people are making money," he said. He also said the successful business model that eventually evolves could involve a "triple revenue stream" from subscriptions, advertising and transaction fees.

Copyright December 1996, Crain Communications Inc.

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